03 January 2009
Subject to the procedures laid down in the Companies Act and the Rules made thereunder for issue and allotment of shares, it is possible that the amount oustanding in the unsecured loan account be converted into share capital provided that there is a valid agreement for conversion and all the terms of the agreement are complied with and proper application and allotment processes. For detailed procedure please refer to the Companies Act, 1956, Rules made thereunder, and related topics such as issue of share certificates rules and so on and so forth.
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